India will have to achieve an average of about 8 percent on an average continuously for the next one or two decades to achieve the goal of becoming a developed nation by the year 2047. The assessment has been introduced in the Economic Review 2024-25 released on Friday. It said, ‘To reach this growth rate, the investment rate will have to be taken up to about 35 percent of the GDP (GDP), which is currently at 31 percent. Apart from this, it is very important to speed up the manufacturing sector as well as to increase investment in emerging technologies like Artificial Intelligence (AI), Robotics and Biotechnology.
Economic reviews say that India will have to make arrangements to generate 78.5 lakh new jobs at an annual level in non-agricultural sector by 2030. Not only this, 100 percent literacy, improvement in the quality of educational institutions, will have to create better infrastructure on a large scale according to future needs. However, in July last year, the NITI Aayog said that India has been developed with a nation developed with an per capita income and an economy of 30 lakh crore by 2047, from 7,000 $ 18,000 per capita income, from 7,000 $ 18,000 per capita income from 7 to 7 for the next 20-30 years. There is a need to maintain a growth rate between 10 percent.
The review shows an estimate of growth rate between 6.3 and 6.8 percent for FY 2026. The review says, “This estimate matches the estimate of the International Monetary Fund, which has been said to be about 6.5 percent between the financial year 2026 and 30,” India’s GDP growth rate. ” The National Statistics Office has predicted the GDP growth rate at 6.4 percent for FY 2025.
The review on the domestic front states that increasing demand in rural areas is a good sign for consumption. According to this, ‘Investment activities are likely to accelerate due to the hope of improving the business environment and increasing public capital expenditure. The capacity utility in the manufacturing sector remains better than the long -term average and the order received from the private sector has indicated a sharp increase. However, increasing global additional capacity in areas such as steel can reduce benefits, which can create aggressive trade policies in search of demand. ‘
The review also emphasizes that India will have to improve its competence globally through regulation to meet infrastructural reforms at the grassroots and medium -term growth. The review between the new and emerging global reality states that the best way to move forward is to increase dependence on internal sources and emphasize domestic means of development. At the same time, to ensure adherence to legitimate economic activities, the economic freedom of people and institutions will have to be emphasized.
The report says, ‘Only by freeing the burden of licensing, inspection and compliance requirements, the people and small enterprises of the country can overcome the serious challenges related to development and employment with their aspirations. Work has been going on for the last ten years to further the agenda of regulation, which is in dire need today.
Economic reviews say that the fast economic growth rate can be found only when the central and state governments continue the process of implementing reforms so that small and medium enterprise can control the costs efficiently while keeping the cost under control.
It states, ‘Rules should be made logical to ensure that the rules are at least necessary to achieve their objective. The entire emphasis in reforms and economic policies should now be on regulation in a systematic manner. Atul Pandey, a partner at Khaitan & Company, says that economic reviews especially emphasize the need to relax the rules at regulatory compliance point.